- The Mozambique Liquefied Natural Gas (LNG) Area 1 Project and the African Development Bank have jointly won the prestigious Global Multilateral Deal of the Year 2020
- The $24 billion LNG) Area 1 Project by exploiting Mozambique’s huge offshore natural gas reserves is rated as the single largest foreign direct investment in Africa with the potential to transform global energy markets
The Mozambique Liquefied Natural Gas (LNG) Area 1 Project and the African Development Bank have jointly won the prestigious Global Multilateral Deal of the Year 2020. The award was given by the print and online publication Project Finance International (PFI).
The $24 billion LNG) Area 1 Project by exploiting Mozambique’s huge offshore natural gas reserves is rated as the single largest foreign direct investment in Africa with the potential to transform global energy markets. Last July, the African Development Bank signed an agreement for a $400 million senior loan to finance the project. Dr. Akinwumi A. Adesina, President of the African Development Bank, said that the award reinforced the African Development Bank’s leadership and role in helping to structure financing and attract investments to Africa. The project is also supported by a global syndicate of commercial banks and export credit agencies.
Total as the lead operator of the project which is implemented by an international consortium of energy developers and operators including Mitsui, Oil India, Bharat Petroleum, PTTEP, Oil and Natural Gas Corporation (ONGC) and Mozambique’s national oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH). The consortium is funding the balance through equity. Financial closing on the project is expected in 2021.
The project is expected to transform Mozambique into one of the world’s largest LNG exporters and boost the country’s potential to meet energy demand through gas-fired electricity and meet its goal of achieving universal access to energy to its citizens by 2030. The project also has the capacity to feed downstream industries such as the fertilizer and electricity sector. In short, it has the potential to fuel agricultural development and trade across the Southern African Development Corporation region.
